IT Outsourcing - Oman

Oman

Revenue in the IT Outsourcing market is projected to reach US$186.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.60%, resulting in a market volume of US$268.50m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$74.69 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The IT outsourcing market in Oman is experiencing significant growth in recent years.

Customer preferences: Omani businesses are increasingly outsourcing IT services to reduce costs and improve efficiency. This trend is particularly evident among small and medium-sized enterprises (SMEs) that lack the resources to maintain an in-house IT department. Additionally, Omani companies are seeking to leverage the expertise of international IT service providers to stay competitive in the global market.

Trends in the market: One of the key trends in the IT outsourcing market in Oman is the increasing demand for cloud-based services. This is driven by the need for greater flexibility, scalability, and cost-effectiveness. Another trend is the growing adoption of emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT). Omani companies are seeking to leverage these technologies to improve their operations and customer experience.

Local special circumstances: Oman's location at the crossroads of Asia, Africa, and Europe makes it an attractive destination for IT outsourcing. The country's stable political environment and supportive government policies also contribute to its appeal. Additionally, Oman's growing reputation as a hub for innovation and entrepreneurship is helping to attract international IT service providers.

Underlying macroeconomic factors: Oman's economy is heavily dependent on oil exports, and the recent decline in oil prices has led the government to diversify the economy. The IT outsourcing sector is one of the areas targeted for growth under the government's economic diversification plan. Additionally, Oman's young and tech-savvy population is driving demand for IT services, creating a favorable market environment for IT outsourcing providers.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.